• Labor & Business Relations – All-Bill Summary 2020

    HF 2362—Unemployment Insurance Nonprofit Appeals

    HF 2362 treats reimbursable nonprofit employers the same as contributory employers for contesting their unemployment insurance reimbursement (the unemployment insurance tax rate for contributory employers). Previously, when a nonprofit got notice of the decision and how to pay, it had to go to district court to contest it. The bill changes that to an unemployment insurance administrative law judge.
    [6/10: 50-0]

    HF 2363—Landscaping Industry Unemployment Tax Rate

    HF 2363 adds landscaping employers to the construction unemployment tax rate. This is the highest rate in the tax table. This change will increase contributions to the Unemployment Trust Fund by approximately $683,000 annually.
    [6/10: 49-1 (No: Zumbach)]

    HF 2364—Injunction Upon Nonpayment

    HF 2364 adds clarifying language to injunctions regarding unemployment insurance. When businesses fail to provide reports and records to Iowa Workforce Development, they can cause workers to be ineligible for unemployment. Also, the bill modifies a reference to plans for liquidation of deficiencies.
    [6/10: 50-0]

    HF 2365—Notice of Unemployment Insurance Claim

    HF 2365 strikes language that notifications to interested parties for an unemployment benefits claims be made by ordinary mail. The interested parties will instead select a format specified by the department (which could be electronic or ordinary mail).

    The final bill also makes changes to unemployment insurance for the Voluntary Shared Work Program, which passed earlier in session. The program is designed for businesses that experience downturns and anticipate a layoff of at least 10% of their workforce. It allows a business to keep its employees by lowering the hours of the employees, instead of eliminating jobs. With HF 2365, a reduction in hours and corresponding reduction in wages must be applied equally to all employees in the affected unit for each week reported (italicize = new code language). An employer may appeal in writing within 30 days from the date of the decision. These provisions apply to all voluntary shared work plans approved by Iowa Workforce Development on or after the effective date of the bill.
    [6/10: 50-0]

    HF 2627—Professional Licensing

    HF 2627 narrows the ability of licensing and professional boards to disqualify individuals holding certain licenses because of a criminal conviction. In addition, the bill addresses the issuing of licenses, certifications or registrations without exams to those who have licenses in other states when they establish residency in Iowa.

    The bill allows (with certain exceptions) out-of-state individuals without licenses who relocate to Iowa to be issued a license without the required Iowa education and training requirements as long as they have three years of relevant work experience.

    Division II of the bill includes many provisions that are not relevant to licensing. Some items in Division II are from bills the Senate passed and the House did not take up. Some items are related to COVID-19 and the Governor’s Proclamations.

    Details of the bill:

    DIVISION I

    Disqualification provisions for criminal convictions

    • The bill eliminates certain subsections in Code chapters for electricians and plumbers regarding denying, revoking or suspending licenses based on certain crime convictions.
    • The bill narrows the ability of licensing and professional boards to disqualify individuals holding certain licenses because of a criminal conviction. For a conviction of a crime to serve as disqualification for a professional license, the offense must directly relate to the duties and responsibilities of the profession. “Offense directly relates to” means actions customarily performed within the scope of practice of a licensed profession or the circumstances under which an offense was committed are circumstances customary to a licensed profession. The Education Examiners can still deny a license due to a founded report of child abuse against the person.
    • A licensing board may grant an exception to disqualification for a license if the board determines by clear and convincing evidence that the applicant is rehabilitated and an appropriate candidate for licensure.
    • A person’s conviction of a crime maybe be grounds for a denial, revocation or suspension of a license only if unreasonable risk to public safety exists because the offense directly relates to the duties and responsibility of the profession and the appropriate license board or agency does not grant an exception. This applies to everyone under 272C (professional licensing—many different professional licenses fall under this chapter), but not to chapter 272 (educational examiners).
    • Petitions and new fee: Allows an applicant to petition the professional licensing board for a determination of whether the applicant’s criminal history results in the denial of a license before applying and allows the professional licensing board to charge a fee to the applicant for administrative work involving the petition. The fee cannot exceed $25.

    Reciprocity of licenses and recognition of work experience

    • (Section 26) Licensure of persons licensed in other jurisdictions: Requires that a professional or occupational license, certificate or registration be issued to a person without an examination if:
      • That person establishes residency in Iowa, or is married to an active-duty military member and is accompanying them on an official permanent change of station to a military installation in Iowa.
      • Certain conditions must be met to allow for licensing, certification or registration without examination in Iowa. Those conditions include similar scope of practice in the other jurisdiction, having been licensed or registered in the other jurisdiction for least a year, the other jurisdiction imposed minimum education requirements (not substantially equivalent to Iowa), the person does not have discipline imposed on them from a regulating entity, etc. This applies to individuals who come from states that require a license, a certification or registration for their profession; and applies to a license, certification, or registration issued by the professional boards covered by Chapter 272C, as well as to the Board of Educational Examiners.
    • (Section 27) A person applying for a professional license, certificate or registration in Iowa who relocates from another state that did not require a professional occupational license, certificate or registration to practice their profession/occupation may be considered to have met education, training or work-experience requirements in Iowa if they have three or more years of related work experience with a substantially similar scope of practice within the four preceding years as determined by the professional licensing board. If Code or administrative rules require a person applying for a professional occupational license, certificate or registration in this state to pass an exam, the applicant must do so. This does not apply to a license, certificate or registration issued by the boards of medicine, nursing, dental, pharmacy or education examiners.

    Fee Waiver

    • A licensing board must waive any fee for a license if the applicant’s household income does not exceed 200% of federal poverty guidelines, and it is the applicant’s first time applying in Iowa. 

    DIVISION II

    • Public records – allow for electronic examination in lieu of in-person.
    • Allows record request in writing, by telephone or electronic means – and cost accordingly.
    • Private security business does not include bails bond businesses.  This was a non-con part of SF 2372, a bill that was passed out of State Government but not taken up on floor.
    • Allows the Elevator Safety Board to reduce elevator fees for nonprofit associations. This was a non-con part of SF 2372, a bill that was passed out of State Government but not taken up on floor.
    • Eliminates the Hospital Licensing Board. This is SF 2327, which passed the Senate 49-0, but was not taken up in the House.
    • Amends the substance abuse treatment Code Chapter by allowing meetings with counsel or family and friends to be telephonically or electronically.
    • Allows personnel certified by BOEE to provide continuing education requirements online, if available.
    • Deer hunting licensing for out-of-state hunters – SF 2201, which passed the Senate 48-2 but wasn’t taken up in the House.
    • Allows real estate appraisers to complete contact hours under supervision in a bordering state, not to exceed 50% of the state requirement.
    • Architect exam flexibility – don’t have to retake modals you’ve already passed.
    • (Section 44) Repeals Travel Agent registration with Secretary of State requirement. This was SF 2133, which passed the Senate 32-17, but was not taken up by the House.
    • Covid Impact: Pushed back repeal of old immunization law. In 2018, a bill was passed that added Iowa Code 155A.46, allowing pharmacists to independently order and administer immunizations. Rules were needed from Medicaid to ensure pharmacists could bill for the immunizations. Rules were noticed this spring, but were delayed because of COVID-19. Pushing back the repeal of the old immunization law for one more year will provide time for education and to enroll with Medicaid, as well as to ensure there is no gap in coverage for Medicaid members who get immunizations at a pharmacy.
    • Covid Impact: School Physicals – extension on requirement for athletics until Dec. 31, 2020.
    • Covid Impact: Shareholder Meeting – allows tele meetings through Dec. 31, 2020.
      [6/13: 32-17, party-line (No: Democrats; Excused: Hogg)]
  • Labor & Business Relations Committee – All-Bill Summary 2019

    SF 304 – Prohibiting licensing sanctions for student loan default

    SF 567- Professional licensing sanctions for felons

    HF 650- Immunity from civil liability for negligent hiring

     

    SF 304 – Prohibiting licensing sanctions for student loan default

    SF 304 requires the state’s licensing boards to adopt rules that prohibit suspension or revocation of a professional license because the licensee is in default or delinquent on repayment of postsecondary education loans, solely on the basis of such default or delinquency.

    The bill repeals Iowa Code sections relating to the process by which the Iowa College Student Aid Commission can initiate action to deny, revoke or suspend a license to someone who has defaulted. According to Iowa Student Aid Commission, they do not use this process now.
    [3/11: 46-0 (Absent: Elder, J. Smith, Zaun; Vacant: Danielson)]

     

    SF 567– Professional licensing sanctions for felons

    SF 567 relates to professional licensing and the ability for licensing boards to deny, revoke or suspend a license because of a felony conviction. The bill allows the boards to grant an exception for a person who would otherwise be denied a license because of conviction for a felony, provided there is an extenuating circumstance that justifies the exemption. The bill also strikes current Code sections allowing the boards to revoke, deny or suspend a license for conviction of any felony.

    The bill forbids the Iowa Department of Corrections to enroll an inmate in an apprenticeship program if the inmate is unable to obtain a necessary license to practice due to a felony conviction that is violent or sexual in nature. Prior to enrolling an inmate in an apprenticeship program, the Department of Corrections must receive written confirmation from the appropriate licensing board that the inmate could receive the necessary license to practice the profession if it appears that inmate may be disqualified from receiving such a license.

    The bill provides specific guidance to the Electrical Examining Board and the Plumbing and Mechanical Systems Board when the boards consider exceptions for a person who would otherwise be denied a license due to a felony. The boards must consider the nature and seriousness of the offense, mitigating circumstances surrounding the commission of the offense, the age of the person at that time, letters of reference and other relevant evidence of rehabilitation. Also, the language provides a list of specific crimes that will be grounds for denial, revocation or suspension of the license.

    These felonies must be grounds for denial, revocation or suspension of a license:

    • Conviction of a felony in Iowa that is sexual abuse in violation of 709.4.
    • Sexually violent felony offense as defined in section 229A.2.
    • Felony dependent adult abuse in violation of section 235B.20.
    • Forcible felony as defined in section 702.11.
    • Domestic abuse felony assault in violation of section 708.2A.

    A conviction of a felony in violation of federal law or in violation of the law of another state will be given the same effect as it would if such conviction had been under Iowa law. Conviction for any other felony will not be grounds for denial, revocation or suspension. A person holding a license prior to July 1, 2019, does not need to obtain an exception to maintain their license.

    The bill alters license requirements for barbering by allowing an individual who completes a barbering apprenticeship training program (registered by the Department of Labor) at the Department of Corrections to take the examination for a license to practice barbering.
    [4/17: 50-0]

     

    HF 650– Immunity from civil liability for negligent hiring

    HF 650 prohibits a cause of action for damages against a private employer, general contractor or premises owner for negligently hiring an employee, agent or independent contractor who has been convicted of a public offense. However, a cause of action for negligent hiring based on evidence that the employee, agent or independent contractor has been convicted of a public offense is not prohibited if all of these criteria are met:

    • The employer knew or should have known of the conviction.
    • The employee was convicted of any of these crimes:
    • A public offense committed while performing duties substantially similar to those to be performed, taking into consideration these factors:
        • Nature and seriousness of the public offense.
        • Extent and nature of employee’s past criminal activity.
        • Age of employee when offense was committed.
        • Amount of time that has elapsed since the last criminal activity.
    • A sexually violent offense
    • Dependent adult abuse
    • First-degree murder
    • Second-degree murder
    • Felony assault
    • Domestic abuse assault
    • First-degree kidnapping
    • Robbery first degree
    • Manufacture or possession of a controlled substance on school grounds and other public properties.
    • A felony offense involving the use of a dangerous weapon.

    The protections provided in this bill will not apply in a suit concerning the misuse of funds or property of a person other than the employer by an employee if, on the date the employee was hired, the employee had been convicted of a public offense that included fraud or the misuse of funds or property as an element of the public offense, and it was foreseeable that the position for which the employee, agent or independent contractor was hired would involve discharging a fiduciary responsibility in the management of funds or property.
    [4/8: 50-0]

  • Labor & Business Relations Committee – All-Bill Summary 2018

    All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

    SF 2353—WIOA federal conformity
    HF 2240—Electronic wage statements
    HF 2297—Boiler steam pressure vessel inspections
    HF 2321—IWD criminal background checks and unemployment changes
    HF 2383—Employer alcohol testing

     

    SF 2353 conforms Iowa Code to the federal Workforce Innovation and Opportunity Act of 2014 (WIOA). The bill adds definitions; makes changes to the conflict of interest policy for State Workforce Board members; updates the political and gender balance of the Board; and requires electronic posting of certain Board information.

    The bill also makes changes to the membership of the local workforce boards; requires a majority of members representing business; makes the Chief Elected Officials responsible for appointees to the local boards, instead of the Governor; provides a list of functions to be carried out by local workforce boards; and makes changes to the political and gender balance of local boards.

    The Iowa Department of Education will be the lead agency collaborating with Iowa Workforce Development on industry and sector partnerships.

     

    HF 2240 permits employers to provide wage statements by secure electronic transmission or other secure electronic means, in addition to the option to provide the statement by mail or in person, or allow the employee to view and print the statement for free. If the employee can’t receive the statement electronically, they must notify the employer in writing at least one pay period in advance, and the employer will provide the statement by mail or in person, or allow the employee to view and print the statement for free. The wage statement must show hours worked, wages earned and deductions taken.

     

    HF 2297 changes the threshold for inspections of boilers and how boilers in dry lay-up (inactive) are handled. Previously, internal inspections of steel hot water boilers were required once every six years and external inspections every year. Now, steel hot water boilers no longer need an external inspection in years internal inspections are conducted.

    The bill changes the procedures for low-pressure steam boilers in dry lay-up. Previously, internal and external inspections were required every year boiler was in operation. Now, if a steam boiler is in dry lay-up, an internal inspection will be conducted.

    Iowa law requires inspections for boilers above 50 gallons and 50,000 British thermal units in places of public assembly, which include:

    • A building or structure primarily used as a theater, motion picture theater, museum, arena, exhibition hall, school, college, dormitory, bowling alley, physical fitness center, family entertainment center, lodge hall, union hall, pool hall, casino, place of worship, funeral home, institution of health and custodial care, hospital, or child care or adult day facility.
    • A building or structure, a portion of which is primarily used for amusement, entertainment or instruction.
    • A building or structure owned by or leased to the state or any of its agencies or political subdivisions.

    The threshold for inspection id increased to 120 gallons and 200,000 British Thermal Units, which exempts at least 7,648 boilers from inspection. This is at odds with recommendations from the National Board of Boiler and Pressure Vessel Inspectors and the Iowa Boiler and Pressure Vessel Board.

     

    HF 2321 requires Iowa Workforce Development (IWD) to conduct criminal history checks for current or prospective employees and contractors with access to federal tax information. The federal government requires these checks for positions with access to IRS-provided tax information. Iowa Workforce Development will pay for the background checks.

    Previously, pensions paid to employees upon separation from employment were applied to an unemployment insurance claim, depending on the percentage that was contributed by the employer. Now the qualified retirement plan deductibility for unemployment benefits will apply only to 100-percent employer contribution plans.

    The bill strikes language requiring employers to designate a period for the allocation of vacation pay to an employee who is laid off or separated from employment. Vacation pay to an employee will only be considered wages for the purposes of unemployment benefits for a maximum of five workdays.

    The bill changes language on notice of an unemployment appeal hearing, adding clarity and a definite time frame. Previously, the appeal hearing could not be scheduled before the seventh calendar day after the parties receive notice. Now, the notice for the appeal hearing must be sent to all parties at least 10 calendar days before the hearing date.

    Iowa Workforce Development may require a nonprofit organization with 15 or more full-time employees that elects to become a reimbursable employer to file a bond or security with IWD.

    The bill changes the effect of unemployment benefits for past fraud or misrepresentation. Those who’ve committed and been issued an appealable decision of fraud are not be eligible for future benefits until they repay their fraudulent overpayment. Previously, they could opt to have future benefits reduced.

    The bill eliminates the minimum wage qualifying threshold in the definition of “employer” for unemployment insurance taxes. The previous definition included a minimum amount of wages an entity must pay in a calendar quarter ($1,500) to be considered an employer.

     

    HF 2383 relates to private employer alcohol testing of employees. Previously, if an employer had a policy on alcohol testing, it had to contain the standard for alcohol concentration that violates the policy. The standard could not be less than .04 (grams of alcohol per 210 liter of breath, or its equivalent). Now, the minimum standard permitted is not less than .02.

  • Labor & Business – All-Bill Summary 2017

    The following bills were passed by the Legislature and signed into law by the Governor.

    SF 32 – Hair samples in private-sector drug testing
    SF 438 – Banning Project Labor Agreements
    HF 291 – Gutting collective bargaining
    HF 441 – Laundry occupations (House Commerce bill)
    HF 533 – Disqualification for unemployment benefits
    HF 529 – Occupation Safety and Health Administration (OSHA) conformity
    HF 542 – Second-year eligibility for unemployment benefits
    HF 572 – WIOA federal conformity for state workforce board (House Eco. Growth bill)

    SF 32 adds hair samples to the testing methods that may be used in private sector drug testing. Current law allows drug testing on samples of urine, saliva, breath and blood. The new law allows hair samples to be tested if standards have been cleared or approved by the U.S. Food & Drug Administration; sets standards for individual privacy; and requires a sample be one-and-one-half inches or shorter. Employers may test hair of prospective employees only.
    [4/5: 35-15 (Bertrand, Bisignano, Bolkcom, Boulton, Chapman, Danielson, Dotzler, Dvorsky, Horn, Jochum, D. Johnson, McCoy, Petersen, Quirmbach, Taylor “no”)]

     

    SF 438 prohibits government entities (e.g., state, cities, counties, schools, community colleges) from requiring a potential bidder on a public improvement project to provide information that the bidder deems confidential or proprietary as a requirement for being a responsive, responsible bidder.

    A government entity cannot ask for a safety record, tax compliance history, past bidding history or pending litigation. Currently, local governments ask for this type of information—what’s sometimes called a “quality assurance questionnaire.”

    A new subchapter in 73A.25: Fair and Open Competition in Government Construction Act (prohibition on government entities from using Project Labor Agreements) bans government agencies from entering into Project Labor Agreements.

    Public improvement means any building or construction work that is built, repaired, remodeled or demolished under the control of a government entity, and is paid for in whole or in part with funds from the government entity (including road construction). Public improvement does not include urban renewal demolition, low-rent housing projects, highway, bridge or culvert projects, city utility work done by its employees or work for a rural water district.

    A violation of Code chapter 73A is a simple misdemeanor and is grounds for removal from office. Previously, it was punishable by confinement for no more than 30 days or a fine of at least $65 but not more than $625, or by both.
    [3/9:26-21, party-line (D. Johnson voting “no” with Democrats)]

     

    HF 291 guts public sector employee collective bargaining rights. Key aspects of the new law include:

    • An exemption for public safety employees (regarding the scope of negotiations) provided they are in a bargaining unit made up of 30 percent public safety employees. Public safety employees are now defined in Iowa Code Chapter 20.3.
      • A public safety employee is a sheriff’s regular deputy, a marshal or police officer, state patrol, narcotics enforcement, state fire marshal, criminal investigation, Department of Public Safety gaming enforcement officer, conservation officer or park rangers, permanent or full-time fire fighter or an Iowa Department of Transportation Motor Vehicle Enforcement Officer. Corrections officers, University police and paramedics are not considered public safety officers.
      • The new law does not treat all public safety employees equally. Police officers in a bargaining unit made up of less than 30 percent public safety employees do not have the same bargaining rights as those in a unit made up of more than 30 percent public safety employees.
      • Public safety employees can no longer deduct dues and PAC contributions from paychecks.
      • Other topics subject to bargaining stay the same for public safety employees.
    • All other public workers can now negotiate for base wages only. If a contract goes to arbitration, the bargaining unit will receive a maximum 3-percent raise or a percentage equal to the increase in Consumer Price Index (CPI) for a 12-month period, whichever is less.
      • They are prohibited from negotiating insurance, leaves of absence, transfer procedures, evaluation procedures, staff reduction, membership dues and PAC contributions. These are illegal topics (i.e., not permissive topics). Even if an employer wants to negotiate with a bargaining group on these items, they cannot.
      • Grievance procedures, seniority, holidays, hours, vacations, shift differentials, health and safety were previously mandatory subjects of bargaining. They now are permissive subjects; both the employer and the employee organization must agree to negotiate permissive topics.
      • Employees covered by a bargaining unit cannot on their own negotiate illegal bargaining topics with their employer. This is prohibited.
    • The new law changes what can be considered in non-public safety employee arbitration.
      • The arbitrator must consider a wage comparison of public and private employees.
      • The arbitrator can no longer factor in the ability of the public employer to levy taxes. This applies to public safety and nonpublic safety.
      • The arbitrator cannot look at past collective bargaining agreements.
      • The arbitrator can consider the interests and welfare of the public, and a public employer’s ability to finance adjustments.
    • The new law makes it more difficult for a public employee union to stay certified.
      • It changes the threshold for a vote from 10 percent of employees in the unit to 30 percent of all bargaining unit employees.
      • All bargaining units now face Wisconsin-style re-certification. All employees in the bargaining unit are considered voters. Previously, the vote was decided by bargaining unit employees that show up for the election. Now, employees who don’t participate are “no” votes on certification.
      • A bargaining unit must recertify before the expiration of their contract.
      • All election costs for certification and re-certification are paid by the public employee organization.
    • Other noteworthy provisions:
      • The Governor has authority to veto statewide collective bargaining agreements following a gubernatorial election.
      • Transit employees will be considered public safety employees under if it is determined by the Iowa Department of Transportation through written confirmation from the U.S. Department of Labor that a public employer would lose federal funding if the transit employee is not covered under certain collective bargaining rights.
      • Any ongoing collective bargaining negotiations not complete when this bill was signed into law were void and must begin anew.

    Division II: Iowa teachers

    • Prohibits all discussion of evaluation procedures.
    • Allows witnesses for the parties to be present in a private hearing, as well as the teacher’s representative. The board must keep a record of the private hearing, but they are no longer required to employ a shorthand reporter.
    • The school board and employee organization can no longer issue subpoenas for witnesses and files.
    • If a teacher does not file for a private hearing on their termination in a timely manner, the board may proceed with the termination and would no longer have to wait until May 31.
    • The school board must make a final decision on the termination. The decision is based solely on the evidence in the record and on matters officially noticed in the record. The adjudicator is removed from the grievance process in termination filings. If a teacher rejects the board decision, they can’t appeal to a neutral adjudicator. They must go to court.
    • The probationary time for teachers is expanded to a mandatory two years, and districts can remove probationary teachers without cause following their two years.
    • Supplemental pay is removed as a negotiated subject of bargaining. This could cause a shortage for after-school activities, which punishes teachers who spend time with kids in the subjects that make them want to go to school.
    • Just cause for termination and discipline is expanded beyond the professional code of ethics.
    • Teachers who participate in intensive assistance and, anytime in the future, fail to meet the applicable standards can be fired.

    Division III: Personnel records and settlements

    • This division comes from the “secret settlements” and “hush money” scandals that plagued the Governor in 2014.
    • Any resignation in lieu of or termination or demotion of a public employee becomes public record.
    • Non-disclosure or confidentiality agreements are eliminated for personal settlement agreements and decisions for executive bonus pay must be made public record. No provision of collective bargaining can supersede this provision of the new law.
    • This could mean more lawsuits from people trying to clear their name.

    Division IV: City civil service requirements

    • It is now permissive for nonpublic safety employees to bargain over seniority rights. A city council may extinguish seniority rights if not covered under a collective bargaining agreement. Firefighters and police officers will get seniority rights if they are part of the 30-percent or above bargaining unit.

    Division V: Health insurance

    • Requires a public employer to provide health insurance to permanent, full-time, public employees. Public employers may offer health insurance to part-time employees.
    • Permits a 30-day enrollment and change period for health insurance.
    • No statewide plan is offered under this law.
      [2/16: 29-21, party-line (D. Johnson voting “no” with Democrats)]

     

    HF 441 allows 16- and 17-year-olds to work in laundry occupations if the washing machine has a capacity of less than 10 cubic feet and is designed to reach an internal temperature that does not exceed 212 degrees Fahrenheit.
    [4/4: 47-3 (Dvorsky, Hogg, Taylor “no”)]

     

    HF 529 conforms state law to federal law for civil penalties in violations of occupation safety health laws. It strikes references to specific dollar amounts for civil penalties. Federal law requires an annual adjustment of penalty amounts based on federal Consumer Price Index. The state Labor Commissioner must adopt rules annually to adjust to the Consumer Price Index.

    Penalties for each violation are increased by about 80 percent. Approximately $1 million annually in penalties has been collected and deposited into the state’s General Fund. It’s estimated that amount will increase by about $800,000 per year. The last change in penalties was in the early 1990s.
    [4/3: 49-0 (Bertrand excused)]

     

    HF 533 disqualifies a person for unemployment benefits they are incarcerated. Since 1975, an Administrative Rule (871-24.25(16)) has deemed incarceration to be voluntarily quitting without good cause and disqualifies a person from unemployment benefits. In 2016, the Supreme Court ruled in Irving v. Employment Appeal Board that the Administrative Rule misinterpreted Iowa Code 96.5 and that incarceration alone does not constitute voluntarily quitting.

    Under this new law, a person separated from employment because they are incarcerated is disqualified from receiving unemployment benefits, unless all of the following conditions are met:

    • The individual notified the employer that they would be absent from work because of incarceration prior to their absence.
    • Criminal charges relating to the incarceration were not filed against the individual, all criminal charges relating to the incarceration were dismissed, or the individual was found not guilty of all criminal charges.
    • The individual reported back to the employer within two work days of the individual’s release from incarceration and offered services.
    • The employer rejected the individual’s offer of services.

    In addition, if an individual is disqualified for unemployment benefits, they are disqualified regardless of the source of their wage credits. This law goes into effect July 2.
    [4/4: 42-8 (Bisignano, Bolkcom, Dvorsky, Horn, McCoy, Petersen, Quirmbach, Taylor “no”)]

     

    HF 542 increases the amount a person who has drawn unemployment benefits must earn to be eligible in the next benefit year from $250 to eight times their weekly benefit amount. States range from a low of $250 in Iowa to 10 times the weekly benefit amount. Iowa Workforce Development estimates this change will disqualify 395 claims (those between $250 and eight times the benefit amount).
    [4/4: 29-21, party-line (D. Johnson voting “no” with Democrats)]

     

    HF 572 makes changes to membership on the state Iowa Workforce Development Board to comply with the Federal Workforce Innovation & Opportunity Act (WIOA). The board has been made up of 50 percent business and 50 percent labor. WIOA requires:

    • A majority of the board’s voting members be representatives of businesses.
    • 20 percent of the board’s members be representatives from labor and community-based organizations.
    • Voting members to increase from nine to 33: 17 from business, seven from workforce (labor and community-based organizations), four from state agencies, the Governor, one state senator, one state representative, one city elected official and one county elected official.
    • 13 nonvoting members.

    The new law also makes changes to board duties, and provides for initial board appointments and transition. The changes to the Workforce Board are effective upon enactment.

    Changes are made to 2016 legislation authorizing Iowa Workforce Development (IWD) to join a consortium with Idaho and Vermont to modify the Idaho unemployment benefit payment software system for use in Iowa. IWD was authorized to use $5.9 million in federal funds for that project, but discovered the system cannot be adapted to Iowa’s needs. The Idaho language is struck, and IWD is now authorized to use the federal funds for unemployment insurance system modernization. The Department is working with the state’s Chief Information Officer to find an appropriate software system.
    [4/3: 49-0 (Bertrand excused)]